The World Bank study evaluates economies according to ten specific areas of business regulation, including the ease of:
- Starting a Business
- Dealing with Licenses
- Employing Workers
- Registering Property
- Getting Credit
- Protecting Investors
- Paying Taxes
- Trading Across Borders
- Enforcing Contracts
- Closing a Business
Singapore, New Zealand and the United States come out as the best locations for doing business, but 11 EU Members, including three of the new Member States, are in the top 25 economies on business ease.
However, the results show that big disparities remain across Europe.
The UK ranks first among EU countries (and 6th overall), with an average of 18 days necessary to start a business, at a cost equal to 0.7% of gross national income (GNI) per capita. Other high scorers include Denmark and Ireland.
On the other hand, Greece - where it takes on average more than 38 days to launch a business, at a cost equal to 24.2% of GNI per capita - ranks last among EU Members, and 109th in the full World Bank ranking, just after Uganda and Nigeria.
EU countries will therefore have to keep up reforms if they want to maintain a competitive edge internationally and continue attracting foreign investments. Indeed, the ease of doing business in Europe is an advantage that the EU still has over fast-growing economies such as China and India. But, as the report points out: “Watch out world, China is a top-10 reformer.”
Other top reformers are found in Eastern Europe. The report acknowledges that the desire to join the European Union has inspired reformers in Croatia, Romania and Bulgaria.
The study also shows that the EU has inspired reform in other countries - particularly in Africa, where entrepreneurs face numerous regulatory hurdles to exporting - by working with them to simplify barriers to trade and facilitate trading across borders.
